Quantitative measures of supplier performance in the form of service levels are critical in any outsourcing relationship. However, they provide an incomplete picture of how well the supplier is performing and meeting the client’s business and IT objectives. A common complaint is that the service levels are green each month,…
Articles Posted in Legal and Contracting Issues
The UDAAP Trap: How Financial Institutions can Avoid Penalties when Using Third Party Services
In Part 1, we noted that financial institutions could find themselves potentially liable for committing an alleged Unfair, Deceptive, or Abusive Act or Practice (UDAAP) as a result of the actions of certain types of external service providers, particularly those that interface directly with customers. In this Part 2, we…
Why Indemnities Matter
Most business clients would rather be in the dentist’s chair than sit through negotiation of the indemnity and liability provisions of their agreement. Admit it: your eyes glaze over, time appears to visibly slow down, and you wonder at how the lawyers can find this stuff interesting enough to argue…
Court of Appeal confirms that information is not property
In a recent judgement, the Court of Appeal of England and Wales held that an electronic database was not a chose in possession or a chattel but a chose in action (see our earlier blog regarding the grant of leave to appeal in this case). In other words, a database…
Remain Vigilant: Managing Cybersecurity Risks in Third-Party Outsourcing Relationships
This article was originally published on February 27, 2014 and is reprinted with permission from Corporate Compliance Insight. Managing third-party suppliers presents significant compliance challenges that often span an organization, raising legal, insurance, human resources and technology concerns, to name just a few. Corporations will continue to wrestle with these…
Pillsbury Bloggers in the News: 8 Tips to Deal With Liability When Outsourcing to Multiple IT Vendors
Mario Dottori is quoted in Stephanie Overby’s recent CIO.com article discussing 8 Tips to Deal With Liability When Outsourcing to Multiple IT Vendors. “In theory, a multi-provider service delivery environment should not create additional complexities in terms of liability. The contracts — entered into separately between the customer and each…
National Cybersecurity Framework Released – Has Your Organization Considered the Implications?
On February 12, 2014, the National Institute of Standards and Technology (“NIST“) released the final version of its Framework for Improving Critical Infrastructure Cybersecurity (the “Cybersecurity Framework” or “Framework“) and the companion NIST Roadmap for Improving Critical Infrastructure Cybersecurity (the “Roadmap“). The final version is the result of a year-long…
Contract made in two places at once – a possibility under UK law
The High Court of England and Wales has recently decided that a contract can, in principle, be made in two separate jurisdictions at the same time if the contract does not include choice of law and jurisdiction clauses. In this situation, either party could seek to enforce the contract in…
Repeal of Third Party Harassment – Are Employers Safe from Claims?
As part of its UK Employment Law Review in 2012, the UK Government announced that it intended to remove the third-party harassment liability provision from section 40(2) of the Equality Act 2010. This provision was repealed on 1 October 2013. This post considers the impact of the repeal and whether…
Does a Service Provider Have a Lien Over Customer Data?
On 19 November, Datateam won permission to appeal from an unreported decision of District Judge Bell sitting in the Reigate County Court on 12 June. The facts of the case, which related to unpaid invoices for database maintenance services, are not of interest except to say that the services agreement…